Singapore's core inflation hit a 14-year high, further explaining the Central Bank of Singapore's policy tightening this month.
According to data published by the Monetary Authority of Singapore, core inflation for June rose 4.4% compared to last month's 3.60%.
Commenting on the jump, it was the highest increase since 2008 and exceeded the median Bloomberg survey estimate for a gain in prices of 4.1%.
The Monetary Authority of Singapore also confirmed that following the surge, the tightening of monetary policy for the 3rd time this year is a necessity in controlling the mounting pressure.
In the meantime, Singapore's inflation forecast update shows the core measure raised between 3%-4% compared to 2.5%-3.5% previously.
In addition, Singapore's consumer price index (CPI) reading also rose to 6.7% compared to 5.6% previously while Bloomberg's median forecast was at 6.2%.
The streak, the Monetary Authority of Singapore predicts a jump of between 5%-6% this year compared to the forecast of 4.5%-5.5%.
On the other side of the causeway, Malaysia's inflation record also increased by 3.4% in June compared to 2.8% in the previous month.
In general, import restrictions from Malaysia can indirectly affect Singapore where our country is the largest supplier there.
